"There was a lot of adjustment, a lot of good work done last year and that positions Vietnam better than other countries," country director Martin Rama said on Tuesday.

"Vietnam is not anticipated to have a crisis. It's facing a slowdown."

The previous forecast dates from late last year and the World Bank would probably revise the number again in April, Rama told reporters on the sidelines of a conference on Vietnam's economy hosted by the Economist Intelligence Unit, which is forecasting dismal 0.3 per cent growth in gross domestic product.

The economy expanded 6.2 per cent last year after being buffeted by a domestic overheating crisis sparked by high inflation and a widening trade deficit. In 2007 it grew 8.5 per cent.

Although exports are a big factor in growth, the performance of some other sectors will also be critical this year, along with government stimulus measures.

"We believe that the key will be in the construction sector. The construction sector had a very bad year last year," he said.